United States Department of Agriculture. First Beef Checkoff in the U.S.? 1922 – Voluntary 5¢ per carload and the first campaign was Meat for Health First.

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Presentation on theme: "United States Department of Agriculture. First Beef Checkoff in the U.S.? 1922 – Voluntary 5¢ per carload and the first campaign was Meat for Health First."— Presentation transcript:

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Third Time is a Charm in 1988! Its state based -- States keep 50 cents Its fair - Everyone pays $1 Its producer controlled Its cost effective - 5% administrative cap It works – Results speak! Passed (79%)

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Established as part of 1985 Farm Bill - $1 per head Became mandatory via national referendum vote by producers in 1988 States retain 50 cents on the dollar; forward 50 cents to Beef Board CBB administers program, subject to USDA approval

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Producer (Beef/Dairy) Pays $1 45 Qualified State Beef Council Dollars Make Individual Fiscal Program Decisions Programs Cattlemens Beef Board Beef Promotion Operating Committee Federation of State Beef Councils (40 States Invest) National Programs* State Programs 10 Members from the Federation 10 Members from CBB Importers pay $1/head or equivalent as well as collections from 5 states without Qualified State Beef Councils *National contracting organizations include NCBA, ANCW, NLPA and USMEF. CBB contracts to do Producer Communications. Todays Checkoff Producer (Beef/Dairy) Pays $1 45 Qualified State Beef Council 50¢ Producer (Beef/Dairy) Pays $1 45 Qualified State Beef Council Cattlemens Beef Board Beef Promotion Operating Committee Federation of State Beef Councils (40 States Invest) National Programs* Importers pay $1/head or equivalent as well as collections from 5 states without Qualified State Beef Councils Producer (Beef/Dairy) Pays $1 45 Qualified State Beef Council

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The Federation means the Beef Industry Council of the National Live Stock and Meat Board, or any successor organization to the Beef Industry Council, which includes as its State affiliates the Qualified State Beef Councils. Beef Promotion and Research Order

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Build beef demand by inspiring, unifying and supporting an effective state and national Checkoff partnership. (Adopted July 2008)

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We believe in the success of a strong state and national partnership resulting in increased consumer demand for beef and higher consumer confidence. We believe in the Industry Long Range Plan as a guidepost for the beef checkoff and the fundamental principle of one vision-one plan-one voice. We believe in producer control of checkoff funds through Qualified State Beef Councils which are the foundation of the beef checkoff. (Adopted July 2009)

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THEREFORE, BE IT RESOLVED, the Federation should operate in a more independent structure while maintaining the synergies and efficiencies of the current relationship with the National Cattlemens Beef Association and strongly opposes any effort to sever the relationship. (Adopted July 2010)

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1.The Federation of State Beef Councils is re- organized so that all of its decision-making with respect to the beef promotion checkoff program is made independent from NCBA decision-making with respect to government and public policy advocacy.

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3. Consistent with the federal Beef Promotion and Research Act and Order, the Federation exclusively nominates and elects the ten Federation members of the BPOC, including the Chair and Vice Chair. The Federation also exclusively nominates and elects eight additional representatives who, together with the Federation Chair and Vice Chair, comprise the Federations Executive Committee.

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4. A Federation Charter is adopted, or amended, exclusively by the Federation; the central feature of the Federations Charter is independent decision-making by the Federation on all matters related to the beef promotion check-off program and prohibition against the Federation using checkoff funds to influence government or public policy.

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5. All funds generated into, and expended out of, the Federation are subject to singular banking and investment accounts; transactions reflecting the Federations name; separate financial reporting; and exclusive control and authority by the Federation.

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6. Annual budgeting for the Federation is subject to the exclusive authority of the Federation.

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7. A senior management executive, reporting to the NCBA CEO, will be responsible for managing the beef promotion check-off program in coordination with the Federation and its Executive Committee.

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8. In all procurement the Federation will comply with requirements of the Act and Order. A long-term renewable Memorandum of Understanding subject to NCBA and Federation adoption or amendment is negotiated on a cost recovery basis for services procured for the Federation from NCBA.

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9. Governing documents of NCBA provide that it will honor the independent decision- making by the Federation and its Executive Committee; at any NCBA governance meetings involving a combination of both representatives of the Federation and others, the Federation representatives will not vote on non-check-off program matters and the others will not vote on check-off program matters.

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10. The Federation achieves efficiency and transparency by participating in the nonprofit corporation status and liability protection, as well as federal income tax exemption, of NCBA; it has public transparency via NCBAs Form 990 reporting to the Internal Revenue Service.

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11. The Federation will implement a compliance function which will have ongoing responsibility for reviewing and approving the checkoff program decision-making independence of the Federation and the accuracy and integrity of all financial transactions and reporting involving checkoff program funds managed under the auspices of the Federation. This compliance official will have a direct line of communication to the Federation and its Executive Committee.

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The Federation Division of NCBA prepares an annual budget with the following approvals: May – approved by Joint Budget Committee (CBB & NCBA members) May – Beef Promotion Operating Committee (BPOC) approval July – approved by Federation members of the Executive Committee July – approved by Federation members of the Board of Directors September – amended budget which includes BPOC contracts is approved by the Federation members of the Budget Committee September – amended budget which includes BPOC contracts is approved by the Federation members of the Executive Committee

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CBB to ensures compliance with the firewall On a monthly basis, CBB reviews every invoice for direct checkoff costs On a monthly basis, CBB reviews all time charged to checkoff projects Bi-annually for the preceding two years, CBB conducts a compliance audit to assess NCBAs checkoff compliance. Beginning with the July 2010 billing, CBB implemented additional review procedures whereby they are reviewing a much larger number of invoices and time and expense charges.

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Annually, NCBA prepares an Annual Report for the Federation Division Annual Report includes detailed Consolidating Federation Division P&L Annual Report includes detailed Investment Summary by SBC Annual Report is distributed to Federation members of the NCBA Board of Directors and the various SBC Board of Directors.

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